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Defence Sector – Q3FY25 overview – Mixed Bag performance

ICICIdirect Research 07 Feb 2025 DISCLAIMER

Overall operational performance of defence companies during this quarter was a mixed bag.

Bharat Dynamics reported strong revenue growth of 38% YoY in Q3FY25 but this strong growth came after a subdued H1FY25 when the company faced some supply chain issues. Margin remained low at 15%. on account of higher raw material cost and higher others cost.

Solar Industries also reported strong growth of 38% YoY in Q3FY25, mainly led by healthy execution in exports and defence segments. Domestic explosives segment was muted as the volumes were impacted due to elections and monsoon.

Cochin Shipyard reported moderate revenue growth of ~9% as the shipbuilding segment revenue declined by 14% while ship-repair segment witnessed strong growth of 65% YoY.

Midhani reported ~6% de-growth in revenue as execution remained muted during the quarter.

Data Patterns also reported 16% revenue de-growth, due to a deferment of scheduled delivery of completed contract by one of the customers.

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